Kenya: 70 Companies Mull Listing in Capital Market

A total of 70 companies have shown interest in listing on the Nairobi Securities Exchange (NSE).

The potential issuers have signed up for the Business Incubator and Accelerator on the Listing Experience event scheduled for March 30th and 31st 2017.

This is a sign that the Capital Markets Master Plan (2014 to 2023) is bearing fruit. It targets to increase listings on the Growth Enterprise Market Segment (GEMS) of the NSE by three to four companies annually to create a solid supply of future Main Board listed companies.

“The response from potential issuers is a clear demonstration of the level of interest in the capital markets as a source of long term funding to support growth and business expansion plans for companies in Kenya and beyond,’’ the CMA Chief Executive Paul Muthaura observed.

The Listing Experience event will give interested companies a realistic and practical feel of the listing process.

They will get an opportunity to participate in a stage by stage, one on one, structured engagement with the CMA, NSE, Nominated Advisors (NOMADS), Transaction advisors, Lawyers, Auditors, Stockbrokers and Investment Banks, among other service providers, allowing for confidential B2B discussions on their readiness for listing.

The areas of engagement on listing will include identifying business needs/strategy issues, developing business plans, considerations for the appointment advisors & other agents, mandating negotiation, required documentation, regulatory and other approvals, the process of issue placement and allotment, and fees and timelines.

The Nairobi Bourse regulator is also collaborating with regional regulators under the East African Securities Regulatory Authorities (EASRA) which recently approved a proposal to support the establishment of a Capital Markets Advisory Centre (CMAC) which will enhance SME access to capital and provide pre and post listing support.